WINNIPEG, Feb. 4, 2013 /CNW/ - (TSX:NFI); (TSX:NFI.DB.U) New Flyer
Industries Inc. ("New Flyer" or the "Company"), the leading
manufacturer of heavy-duty transit buses in the United States and
Canada, announced today that the Board of Directors of the Chicago
Transit Authority ("CTA") recently awarded one of two contracts to New
Flyer in support of the agency's transit bus mid-life overhaul
program. This mid-life program is for CTA's fleet of 1,029 New Flyer
buses currently in operation that have been in service for up to seven
years and have more than 275,000 miles each in daily stop-and-go
The notice-to-proceed (NTP) received by New Flyer calls for the
provision of certain spare parts and labor services for the mid-life
overhaul program estimated at approximately $50 million over the next
24 months for a specific group of 400 New Flyer buses. New Flyer and
its local Disadvantaged Business Enterprise (DBE) partner, Dependable
Bus Equipment, Inc., will provide the material to its other Chicago
labor partners, Bus & Truck of Chicago and Cummins NPower, LLC.
New Flyer will also provide an estimated $25 million of spare parts and
labor services directly to Cummins NPower, LLC which was awarded the
second mid-life contract by CTA for specific scopes of work on another
group of 629 New Flyer buses.
This program is the first of its kind for New Flyer's Aftermarket
business, whereby New Flyer will provide CTA with a turn-key solution
for a mid-life program. The contract is expected to commence in the
first quarter of 2013, with an average of six buses undergoing overhaul
each week over the next two years.
"This is a significant step in New Flyer's strategy to grow our product
support and aftermarket business. It goes beyond simply selling spare
parts - rather it builds on our mission to provide best value and
support to our customers for the life of their buses," said Paul
Soubry, New Flyer's President and Chief Executive Officer. "We applaud
CTA for taking this progressive step forward to ensure the longevity
and cost effective performance of its existing fleet - all with focus
on delivering safe and reliable transit for the community."
CTA President Forrest Claypool added, "This project is critical to
keeping buses operating efficiently, smoothly and reliably - and also
will help the CTA avoid the significant additional maintenance costs
that the agency would incur if work were deferred."
NOTE: All dollar amounts are stated in US currency.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the
United States and Canada. The Company's three manufacturing facilities
- in St. Cloud, MN; Crookston, MN; and Winnipeg, MB - are all ISO 9001,
ISO 14001 and OHSAS 18001 certified. The Company currently operates a
parts fabrication facility in Elkhart, IN and four parts distribution
centers in Erlanger, KY; Fresno, CA; Winnipeg, MB and Brampton, ON.
The Company also operates a service center in Arnprior, ON.
With a skilled workforce of over 2,000 employees, New Flyer is a
technology leader, offering the broadest product line in the industry,
including drive systems powered by clean diesel, LNG, CNG and electric
trolley as well as energy-efficient diesel-electric hybrid vehicles.
New Flyer has delivered over 32,000 heavy-duty buses in the United
States and Canada. All products are supported with an
industry-leading, comprehensive parts and service network. Further
information is available on New Flyer's web site at www.newflyer.com.
The common shares and convertible unsecured subordinated debentures of
New Flyer are traded on the Toronto Stock Exchange under the symbols
NFI and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to
expected future events and financial and operating results of the
Company that involve risks and uncertainties. Although the
forward-looking statements contained in this press release are based
upon what management believes to be reasonable assumptions, investors
cannot be assured that actual results will be consistent with these
forward-looking statements, and the differences may be material.
Actual results may differ materially from management expectations as
projected in such forward-looking statements for a variety of reasons,
including market and general economic conditions and economic
conditions of and funding availability for customers to purchase buses
and to purchase parts or services, customers may not exercise options
to purchase additional buses, the ability of customers to terminate
contracts for convenience and the other risks and uncertainties
discussed in the materials filed with the Canadian securities
regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, unless required by applicable law.
SOURCE: New Flyer Industries Inc.
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